At December 31, 2016, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost of goods sold and net income for 2016?O A. Overstates cost of goods sold and understates net incomeO B. Understates cost of goods sold and overstates net incomeO C. Leaves both cost of goods sold and net income correct because the errors cancel each otherO D. Overstates both cost of goods sold and net income

Cost of goods sold:- Cost of goods sold includes the direct costs of producing or purchasing the…

at December 31, 2016, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost of goods sold and net income for 2016? D A. Overstates cost of goods sold and understates net income D B. Understates cost of goods sold and overstates net income O C. Leaves both cost of goods sold and net income correct because the errors cancel each other O D. Overstates both cost of goods sold and net income

at December 31, 2016, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost of goods sold and net income for 2016? D A. Overstates cost of goods sold and understates net income D B. Understates cost of goods sold and overstates net income O C. Leaves both cost of goods sold and net income correct because the errors cancel each other O D. Overstates both cost of goods sold and net income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Only 4b question. Thanks!
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#26 While examining the December 31, 2018 financial statements of Sydney company, the following errors are discovered: *Inventory on January 1 had been overstated by P30,000. *Inventory on December 31 was understated by P60,000. During 2018, Donna received a P120,000 cash advance from customer for merchandise to be manufactured and shipped during 2019. The amount was credited to sales revenue. *The net income reported on the 2018 income statement before reflecting any adjustment is P3,000,000. What is the corrected net income for the year ended December 31, 2018? ANSWER: 2,970,000 Pls provide solution and explanation for the answer above